1 minute ago, scotchegg said:

As development for MSFS is mostly outsourced, and it’s clearly profitable, I doubt it’ll have any effect.

Yes but there cost are increasing faster than the last10years they may have to cut staff as some studios are doing, some online PC retailers my not survive.

4 hours ago, nas123 said:

I just wonder. Time will show.

Microsoft announces big layoffs that will affect 10,000 employees

Why do you use such big letters?

1 minute ago, MarioDonick said:

Why do you use such big letters?

He probably do, so it looks more scarier than it really is:p

Edited January 18, 20233 yr by Kaboki

MSFS will be fine, Asobo plays a bigger part in MSFS than what it appears.

Stop speculating and instead just keep flying. Seriously, what is the point of this discussion. 

Well currently the tech industry is facing a big challenge with layoffs and the recession ghost is looming. Honestly MSFS team got layoff or now, is the least of my worries now as many of us who are working in the tech industry being paranoid about it.

1 hour ago, Flic1 said:

They increased employee headcount by over 50% since 2019.  This is probably just the start for all of the bloated, overvalued tech companies...

Yep, there will be more lay offs down the road. You can count on it. I predict this downturn will rival the 90s dot com bust.

Edited January 18, 20233 yr by udidwht

1 hour ago, G-RFRY said:

It`s not just MS the PC industry is facing the biggest fall in sales for 30years but they cannot afford to drop prices below cost shares may collapse.

Ultimately they may have no choice but to cut prices.

I think this chart puts it all in perspective 

 

 

 

 

5 minutes ago, MarkW said:

I think this chart puts it all in perspective 

 

 

 

 

And not long after boosting salaries significantly.

51 minutes ago, MarkW said:

I think this chart puts it all in perspective 

 

 

 

 

Spot on!  So far this is approx 5% of their workforce.  Here is a quote of a Wall St. Journal article today:

"Microsoft was among the tech companies that stepped up hiring in recent years.
The company reported 221,000 employees at the end of its fiscal year through June.
That was up 22% from the previous year."

Edited January 19, 20233 yr by fppilot

10 hours ago, sd_flyer said:

I wonder about Starfield?

I'd hope that because it's relatively close to release they won't bin it off entirely, should still release this year (I hope!).

According to MS 5% staff cuts this year 10,000 is not 5%.

Micron plans staff decimation as demand dips • The Register

Edited January 19, 20233 yr by G-RFRY

14 hours ago, nas123 said:

I just wonder. Time will show.

Whether MSFS employees are laid off or not, it depends on the profitability of MSFS.  If MSFS was profitable in 2022 and is projected to be profitable in 2023, I don't think there will be any layoffs. And for sure, if MSFS is profitable in 2022 and is projected to be profitable in 2023, Jorg will keep his job.  Companies usually layoff in departments/divisions first, for products that are unprofitable.

Another thing to consider is whether the MSFS engine is a prototype for things to come. For example, if the MSFS engine will be used in a combat flight simulator, a train or truck simulator (if the ground photogrammetry and ground details improve further), or maybe it will be used for Microsoft to enter the commercial market.  If there are further plans for the MSFS engine (and I think there probably are plans), I'm pretty sure Jorg is valuable to Microsoft, and so is the MSFS team.

Just as a hint, Microsoft has invested in Blackshark AI: https://siliconcanals.com/crowdfunding/blackshark-ai-raises/.  IMO, Microsoft's investment in Blackshark AI is a sign that Microsoft likes where the technology with the MSFS engine is going, that is, making a 3D version of the entire world.  

So if you ask me, I don't think Jorg is going anywhere and neither are the employees for MSFS, if MSFS made a profit in 2022 and is projected to make a profit in the coming years, and/or if Microsoft has further plans with the MSFS engine.

10 hours ago, udidwht said:

Ultimately they may have no choice but to cut prices.

Generally the reaction to a downturn is increase prices.